Market Information Tuesday 4 August 2026

European Central Bank analysis shows that the Iran war caused a sharp drop in euro zone household consumption in April, driven largely by falling consumer confidence rather than income constraints. Nominal consumption growth slowed to around 2.5% year on year from an average of 3% to 4% since mid-2024. Higher-income households cut discretionary spending most, while concerns about inflation and future purchasing power led many consumers to postpone spending.

Eurozone manufacturing expanded further in July, with factory output rising at its fastest pace since March 2022. The S&P Global Eurozone Manufacturing Purchasing Managers’ Index increased to 51.9 from 51.4, while the output index climbed to 52.9. However, growth was driven mainly by firms working through existing order backlogs rather than strong new demand. Export orders declined, employment continued to fall, and manufacturers remained cautious despite stronger economic growth and improving business confidence.

India has proposed tax law changes aimed at encouraging foreign investment by providing greater tax certainty for offshore funds that use India-based fund managers. The draft bill would remove minimum fund size and investor diversification requirements currently needed to qualify for safe harbour protection from Indian taxation. Offshore funds would still need to meet safeguards, including limits on domestic investor exposure. Industry experts said the proposal could make it easier for offshore funds to appoint local managers and improve the investment climate.

The 6M Euribor increased with 3 basis points to 2.71% compared to previous business day. The 10Y Swap decreased with 6 basis points to 3.18% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.